Identifier
Created
Classification
Origin
07OSLO163
2007-02-20 06:10:00
CONFIDENTIAL
Embassy Oslo
Cable title:  

(C) NORWEGIANS NOTE FATF COMPLIANCE; PAKISTAN

Tags:  EFIN ETTC LE PREL PTER KTFN 
pdf how-to read a cable
VZCZCXYZ0003
PP RUEHWEB

DE RUEHNY #0163 0510610
ZNY CCCCC ZZH
P 200610Z FEB 07
FM AMEMBASSY OSLO
TO RUEHC/SECSTATE WASHDC PRIORITY 5222
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC PRIORITY
RUEAHLC/HOMELAND SECURITY CENTER WASHINGTON DC PRIORITY
RHMCSUU/FBI WASHINGTON DC PRIORITY
RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC PRIORITY
C O N F I D E N T I A L OSLO 000163 

SIPDIS

SIPDIS

EB/ESC/TFS KATHERINE LEAHY, EB/ESC/TFS LEANNE CANNON, S/CT
PATTY HILL AND S/CT FINANCE GALER AND NOVIS

E.O. 12958: DECL: 02/14/2017
TAGS: EFIN ETTC LE PREL PTER KTFN
SUBJECT: (C) NORWEGIANS NOTE FATF COMPLIANCE; PAKISTAN
RECEIVES NORWEGIAN CASH

REF: STATE 16120

Classified By: DCM Kevin M. Johnson, Reasons 1.4(b) and (d)

C O N F I D E N T I A L OSLO 000163

SIPDIS

SIPDIS

EB/ESC/TFS KATHERINE LEAHY, EB/ESC/TFS LEANNE CANNON, S/CT
PATTY HILL AND S/CT FINANCE GALER AND NOVIS

E.O. 12958: DECL: 02/14/2017
TAGS: EFIN ETTC LE PREL PTER KTFN
SUBJECT: (C) NORWEGIANS NOTE FATF COMPLIANCE; PAKISTAN
RECEIVES NORWEGIAN CASH

REF: STATE 16120

Classified By: DCM Kevin M. Johnson, Reasons 1.4(b) and (d)


1. (C) On February 14 we delivered reftel points to MFA
Legal Department Deputy Director Martin Sorby, who confirms
that Norway has fully implemented FATF recommendations.
Norway is also currently implementing follow-up
recommendations associated with a 2005 review of its FATF
compliance. Sorby noted that the 2004 Norwegian Money
Laundering Act is also one of the most stringent pieces of
anti-laundering legislation in Europe.


2. (C) A February 14 article in the Norwegian daily
Aftenposten discussed cash flowing from Norway to Pakistan.
The article notes that "official" cash flow to Pakistan from
Pakistani-Norwegians increased 60 percent in 2006, amounting
to approximately $19.3 million dollars. The story suggests
that tens of millions of Norwegian kroner are smuggled into
Pakistan, particularly into its Punjab region.


3. (C) The article also stated that the cash flow is being
used to avoid Norwegian taxes, relating primarily to a
long-standing issue concerning unreported income from largely
Norwegian-Pakistani taxi drivers. Norwegian media reported
that a number of such drivers collect Norwegian state
assistance while simultaneously deriving income from
operating taxis. Garnering this extra income violates the
conditions for receiving the state assistance. This
underground income is sent to Pakistan, channeled mainly into
local real estate investments. The Norwegian tax violators
also do not pay the necessary Norwegian taxes on the
purchased foreign Pakistani real estate. Sorby reiterated
that the Norwegian authorities are following this issue to
confirm that any illegal cash flows do not have any terror
finance implications.
WHITNEY